Marketing 2.0 Challenges and opportunities

Internet….accepted widely as one of the most promising marketing tool

In spite of its wide reach and low cost , restricted to online companies only.

Traditional offline methods – Still the first choice of offline businesses

Online Marketing

Advertisement expenditure on internetvs

Offline media expenditures (e.g. TV , Print advt.)

Online Marketing

IT Sector

Leading supporter of online marketing channel Spends highest on online advt.

FMCG, Consumer durables & Consumer utilities

Account for 70% of the total ad expense account but…… for a share of mere 30% in online ad expenditures.

Online Marketing

Internet users & Non-internet users Targetting just any one of the above is losing

the otherSurvey by iProspect showed that,

67% of online search users are driven to perform searches as a result of exposure to some offline channel

and 39% of them bought the product they were

seeking

Customers

68% of people use a part or full name of the company/product/service in search engines to find the desired result.

Most of the company’s offline materials don’t help customers to find company’s website.

People who, already search online and take the pain of looking for the product on net (w/o

guidance)

can be made easy target by companies upon providing explicit instructions.

Customers

Tradition brick and mortar cos’ advertising their online proposition - limited to incidental advertising.

Web based companies clearly neglect the potential of offline marketing.

(exceptions like shaadi.com, monster.com,yahoo.com etc.)

Offline marketing still most effective – additional cost can be justified by no. of online traffic & increased awareness

But, amount of info. provided is enormous compared to a 20sec commercial

Mismatch: Need of integrating efforts

“Gang of Girls” initiative by Sunsilk, started in 2006

Had 30,000 gangs by 2007 and has 7.5 lac by today.

As per HLL, this initiative had resulted increase in

both sales and market share

Solution…..Optimal mix of both

Retailer can encourage customer to visit site

To : discuss value offerings with other

consumers, provide feedback, be informed of the latest products

Main focus of website not restricted to sales but, to drive customers towards the physical shop.Also helps in making new customers online,

through socialization and word of mouth publicity.

What and how to do?

Issues

Advt. fail to direct the viewer towards correct URL or,

Effort wasted due to lack of info. on the website Common mistakes

Product website more of a trend than a tool URL published with advt. not properly highlighted Discontented consumers owing to poorly designed

website Using URL just to count the no. of visitors for measuring

ad effectiveness

Ineffective integration

Mistakes in proper integration (like improper info. on website ) may: Largely impact integrated marketing and

Push the customer towards alternatives

Ineffective integration

“One of the Internet's strengths is its ability to help consumers find the right needle in a digital haystack of data”